A Level Business: Mass and Niche Markets

Flashcards covering key vocabulary related to mass markets, niche markets, and essential concepts in A Level Business.

Mass Market

A market where a business sells into the largest part of the market, with many similar products offered by competitors.

Niche Market

A market targeting a smaller segment of a larger market, where customers have specific needs and wants.

Market Size

Indicates the potential sales for a firm, measured in terms of volume (units) and value (sales).

Market Share

Explains how the overall market is divided between existing competitors, calculated based on market value or volume.

Economies of Scale

Cost advantages that arise with increased output of a product, leading to lower average costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand’s products over another.

Quantitative Skills

Mathematical skills required for applying ratios, percentages, averages, and analyzing data in business contexts.

Percentage Change

A formula used to express the change in a value compared to its previous value, calculated as [(New - Old) / Old] x 100.

Characteristics of Mass Markets

Majority customer base with general needs, associated with high production capacities and potential for low operational costs.

Pros of Niche Markets

Ability to charge premium prices, easier customer targeting, flexibility in small-scale production, and less competition.

Cons of Mass Markets

High levels of competition and the need for significant differentiation of homogeneous products.

Index Numbers

A way to simplify complex data by using a base year value as a reference point, where it equals 100.

Market Growth

An increase in the potential sales of a product over time, important for existing and potential market entrants.